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Government of the Republic of Namibia and De Beers Extend Sales Agreement to 2013

Partners Fully Committed to Developing Local Downstream Diamond Industry
in Namibia
WINDHOEK, Namibia, Jan. 30 /CNW/ - The Government of the Republic of
Namibia and De Beers today announced an agreement that secures the sale of
Namibia's diamonds through the Diamond Trading Company until 2013. This
agreement will cement one of the most enduring and important partnerships in
the global diamond industry for years to come.
For the first time, this unique agreement will extend from diamond mining
into diamond marketing with the establishment of a 50:50 joint venture -
Namibia Diamond Trading Company (NDTC) - responsible for the valuing, sorting,
selling and marketing of Namdeb's(1) diamond production.
Diamonds play an important role in the Namibian economy:
- Diamonds account for more than 40% of the country's export revenue, 7%
of the government revenue and approximately 10% of the country's GDP
- Namibia produces approximately N$5 billion (US$700 million) worth of
diamonds per year
- With almost 3,200 employees, Namdeb is already Namibia's largest
employer. The number of those supported by the De Beers family of
companies in Namibia is more than 40,000
- Namdeb contributes approximately N$2 million (US$300,000) in corporate
social development projects annually in Namibia, principally in the
areas of education, small business, community development and health,
particularly in HIV/Aids prevention
- Namdeb is the largest corporate responsibility contributor to the
socio-economic development of Namibia.
Both partners, the Government and De Beers, are committed to the creation
of a sustainable and flourishing downstream diamond industry. To this end,
NDTC will sell rough diamonds to local cutting and polishing factories as well
as export to DTC International. It is envisaged that NDTC will be the primary
vehicle for the growth of the diamond manufacturing industry in Namibia.
Working together with Namibian-based diamond manufacturers, NDTC will also
support local marketing initiatives. The new agreement will ensure that up to
N$2billion (US$300 million) worth of diamonds will be made available locally
by 2009; representing close to 5% of Namibia's GDP.
Delivering the keynote address at the occasion, Namibia's Minister of
Mines and Energy Erkki Nghimtina said: "With the signing of this agreement
today we have further deepened our partnership with De Beers to ensure that
diamonds contribute even further to the economic success of Namibia."
Also speaking at the signing ceremony Nicky Oppenheimer, Chairman of De
Beers, said "Today's agreement is further testimony to the strength of our 13
year partnership, and a demonstration of De Beers' commitment to working
together with Government to ensure that the country's most valuable natural
resource has been turned into sustainable wealth that touches the lives of all
Namibians."
The sales agreements between DTC International, NDTC and Namdeb will next
be reviewed on 31 December 2013.
Notes to Editor:
DE BEERS
De Beers is the leading diamond mining company in the world, producing
over 40% of global gem diamonds from our mines in southern Africa, as well as
sorting and selling them to the world's best diamantaires. We have 15 mines
across Africa and new mines coming on stream in Canada. Many of these mines
are joint ventures with partner governments - in Botswana, Namibia and
Tanzania - building on over a century of expertise in every form of mining.
Together with its partner companies, De Beers employs more than 21,000 people
in 25 countries. The investment we make in southern Africa brings economic
development, employment, healthcare and education to the communities in which
we live and work.
THE DIAMOND TRADING COMPANY (DTC)
The DTC is the sales and marketing arm of the De Beers Group and is the
world's largest supplier of rough diamonds. With activities in sorting and
valuing, sales and marketing, the DTC has representative offices in many
countries including the UK, South Africa, Botswana, Namibia, Japan, Hong Kong,
Italy, Dubai and India.Formed in 1934, the DTC was incorporated in 1986 and
established as a stand alone company within the De Beers Group in July 2004.
Through its sales and marketing strategy, Supplier of Choice, the company is
focused on growing consumer demand for diamond jewellery and maintaining
consumer confidence in the integrity of diamonds. 'A Diamond is Forever' has
been at the heart of its marketing strategy since 1947.
(1) Namdeb Diamond Corporation (Pty) Limited is owned in equal shares by
the Government of the Republic of Namibia and De Beers Centenary AG. Namdeb's
predecessor, Consolidated Diamond Mines (CDM), was a wholly owned subsidiary
of De Beers until 1994.